ID :
12554
Tue, 07/15/2008 - 16:14
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https://oananews.org//node/12554
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Gov't retains economic view, notes gradual price rise
TOKYO, July 15 (Kyodo) - The government retained its assessment of the current state of the Japanese economy Monday, indicating a pause in Japan's economic recovery with weak movements in exports and production, while becoming more cautious about price rises.
''While the economic recovery appears to be pausing, weak movements are seen recently,'' the Cabinet Office said in its monthly economic report for July, using the same phrasing as in the June paper.
Following upward trends in Japan's inflation data, the latest report modified its wording on consumer prices, saying price levels have been ''gradually on the rise.'' Between March and June, the office said consumer prices have been ''increasing slightly.''The core nationwide consumer price index, which excludes fresh food prices, rose 1.5 percent in May from a year earlier, posting the fastest increase in more than 15 years. The data came out at the end of June.
The July economic report revised its view of corporate business sentiment downward, saying companies ''have become all the more cautious'' rather than the phrase ''increasingly cautious'' used between April and June.
A Cabinet Office official said the change in wording reflected the Bank of Japan's latest Tankan quarterly business confidence survey, which was released July 1.
Business confidence among Japan's major manufacturers deteriorated in the three months through June from the previous quarter for the third straight quarter of decline, hitting the lowest level since September 2003, according to the Tankan survey.
The government maintained its assessment for exports and industrial production for the second month, saying they ''have been in a weak tone recently.''The report said that the future course of Japanese exports will be influenced by U.S. economic movement and emphasized the need to monitor inventory levels of items such as electronic parts and semiconductors.
As for short-term prospects, the office said the Japanese economy is ''expected to recover moderately'' with a pickup in the U.S. economy, and projected an increase in Japanese exports.
But the July paper continued to warn about increasing downside risks to the Japanese economy, including that of a U.S. recession, volatile movement in the global market stemming from the subprime crisis and sky-high crude oil prices.
The government maintained its views on other aspects of economic activity, saying corporate profits are ''falling'' and business investment is ''almost flat.'' Improvement in employment conditions ''appears to be pausing while some severe aspects remain,'' the July paper said, adding private consumption is ''almost flat.''
''While the economic recovery appears to be pausing, weak movements are seen recently,'' the Cabinet Office said in its monthly economic report for July, using the same phrasing as in the June paper.
Following upward trends in Japan's inflation data, the latest report modified its wording on consumer prices, saying price levels have been ''gradually on the rise.'' Between March and June, the office said consumer prices have been ''increasing slightly.''The core nationwide consumer price index, which excludes fresh food prices, rose 1.5 percent in May from a year earlier, posting the fastest increase in more than 15 years. The data came out at the end of June.
The July economic report revised its view of corporate business sentiment downward, saying companies ''have become all the more cautious'' rather than the phrase ''increasingly cautious'' used between April and June.
A Cabinet Office official said the change in wording reflected the Bank of Japan's latest Tankan quarterly business confidence survey, which was released July 1.
Business confidence among Japan's major manufacturers deteriorated in the three months through June from the previous quarter for the third straight quarter of decline, hitting the lowest level since September 2003, according to the Tankan survey.
The government maintained its assessment for exports and industrial production for the second month, saying they ''have been in a weak tone recently.''The report said that the future course of Japanese exports will be influenced by U.S. economic movement and emphasized the need to monitor inventory levels of items such as electronic parts and semiconductors.
As for short-term prospects, the office said the Japanese economy is ''expected to recover moderately'' with a pickup in the U.S. economy, and projected an increase in Japanese exports.
But the July paper continued to warn about increasing downside risks to the Japanese economy, including that of a U.S. recession, volatile movement in the global market stemming from the subprime crisis and sky-high crude oil prices.
The government maintained its views on other aspects of economic activity, saying corporate profits are ''falling'' and business investment is ''almost flat.'' Improvement in employment conditions ''appears to be pausing while some severe aspects remain,'' the July paper said, adding private consumption is ''almost flat.''
